D     000  467  155     8 


Some  Reasons  why  the  Hepburn  Bill  should 
not  be  passed  before  the  Report  of  the 
Isthmian    Canal    Commission   is   made. 


Some  Reasons  why  the  Hepburn  Bill  should 
not  be  passed  before  the  Report  of  the 
Isthmian    Canal    Commission    is    made. 


In  view  of  the  many  false  statements  and  the 
misleading  reports  disseminated  by  various  interests  rel- 
ative to  the  Panama  Canal  and  the  New  Panama  Canal 
Company,  in  connection  with  the  construction  of  an  Isth- 
mian Canal ;  and  because  of  the  misinformation  which 
prevails  about  the  project,  the  New  Panama  Canal  Com- 
pany, through  its  counsel,  desires  to  state  : 

That  the  Panama  Canal  is  not  a  wrecked,  aban- 
doned piece  of  property.  On  the  contrary,  it  is  actively 
under  construction,  and  has  been  for  the  past  four  years, 
during  which  time  from  two  to  four  thousand  laborers 
have  been  continuously  employed,  besides  a  large  force  of 
engineers. 

The  total  length  of  the  Canal  is  47  miles.  Of 
this,  20  miles — about  15  on  the  Atlantic  side  and  5  on  the 
Pacific — have  been  practically  completed,  and  a  large 
amount  of  interior  excavation  has  been  done.  Over 
50,000,000  cubic  yards  have  already  been  excavated  from 
the  Canal,  and  only  65,000,000  remain  to  be  excavated. 

The  harbors  at  either  end  have  been  established 
and  used  by  the  commerce  of  the  world  for  upwards  of 
fifty  years. 


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Large  and  commodious  docks  and  warehouses 
have  been  built  at  these  harbors,  and  arc  now  in  use.  The 
dock  at  Panama,  recently  completed,  cost  at  least 
$l,r>00,000. 

The  Panama  Railroad  parallels  the  Canal  and 
connects  the  two  harbors  and  is  an  efficient  aid  to  the  con- 
struction of  the  Canal. 

The  engineering  problems  have  been  conclusively 
solved  by  the  most  eminent  Board  of  Engineers  in  the 
world,  after  four  years  of  examination  and  labor,  and  at  an 
expense  of  millions  of  dollars  in  engineering  work,  develop- 
ment and  construction. 

These  facts  can  be  substantiated  by  members  of 
the  Isthmian  Canal  Commission,  who  have  recently  visited 
the  Isthmus  and  inspected  the  route  and  plant  of  the  New 
Panama  Canal  Company. 

This  Commission  was  appointed  by  President 
McKinley,  pursuant  to  an  Act  of  Congress  passed  in  March, 
1899,  and  $1,000,000  appropriated  to  defray  the  expenses 
of  investigation. 

They  are  now  continuing  their  investigation,  and 
have  at  least  six  hundred  engineers,  assistants  and  laborers 
in  the  field. 

Admiral  Walker,  Colonel  Ernst  and  Ex-Senator 
Pasco,  members  of  this  Commission,  are  in  daily  attendance 
at  their  offices  in  the  Corcoran  Building,  on  15th  Street,  in 
this  city. 


4 
Regarding  the  New  Panama  Canal  Company* 

The  Present  Company  acquired  by  purchase  from 
the  Receiver  or  Liquidator  of  the  old  Company,  all  of  its 
property,  plant,  rights  and  concessions,  and  has  no  connec- 
tion directly  or  indirectly  with  the  old  De  Lesseps  Com- 
pany, the  former  owner. 

It  is  now  the  absolute  owner  of  the  Panama  Canal 
works,  buildings,  machinery,  concessions,  and  all  other  Canal 
property  on  the  Isthmus.  Its  shares  of  stock  are  owned  by 
the  subscribers  who  organized  the  New  Company,  who  are 
private  individuals,  firms  and  banks. 

The  Concessions  are  undisputed  and  in  force. 

The  diplomatic  rights  of  this  Government  respect- 
ing the  protection  of  the  Canal  and  its  use,  are  superior  to 
those  of  any  other  nation,  as  established  by  the  Treaty  of 
1846  with  New  Granada  (now  Colombia),  and  the  Conces- 
sions. 

The  rumor  that  the  Company  is  or  has  been  offer- 
ing its  works,  plant  or  machinery  for  sale  is  absolutely  untrue. 

The  Company  has  not  asked,  is  not  asking  and 
does  not  seek  any  financial  aid  from  the  United  States. 

But  while  it  does  not  seek  any  financial  aid  from 
the  Government,  it  recognizes  the  National  sentiment  in 
favor  of  acquiring  some  pecuniary  interest  in  any  Isthmian 
Canal.  It  has,  heretofore,  in  writing,  offered  to  the  Govern- 
ment that  if  as  the  result  of  the  investigation  now  being 
made  by  the  Isthmian  Canal  Commission,  the  United  States 
adopts  the  Panama  Route,  the  New  Panama  Canal  Com- 
pany, if  the  Government  so   desires,  will  re-incorporate  un- 


der  the  laws  of  the  State  of  New  York,  or  of  some  other 
State  of  the  Union,  subject  to  the  provisions  of  its  Conces- 
sions, and  vest  its  Concessions  and  property  in  such  cor- 
poration. It  will  also  in  said  event,  accord  to  the  United 
States  such  representation  in  its  Board  of  Directors  and 
such  opportunity  to  acquire  an  interest  in  its  securities  as 
may  be  permitted  by  its  Concessions,  which  of  course  must 
be  scrupulously  observed  ;  and,  further,  if  the  United  States 
should  desire  to  perpetuate  or  enlarge  its  existing  rights  and 
privileges  acquired  under  the  Treaty  of  1846,  the  Company 
will  conform  to  such  supplemental  treaty  as  may  be  entered 
into  between  the  United  States  and  Colombia. 

The  Company  has  at  no  time  had,  or  maintained, 
any  lobby  in  Washington,  and  any  statement  to  the  con- 
trary is  untrue.  It  relies  upon  the  merits  of  its  project  and 
the  advanced  condition,  of  its  work,  and  is  confident  of  the 
completion  of  its  canal. 

It  is  also  respectfully  submitted  that  the  Congress 
of  the  United  States  should  not  undertake  at  this  time  to  legis- 
late upon  this  important  question,  without  waiting  for  the 
report  of  the  Isthmian  Canal  Commission,  after  having  appro- 
priated a  million  dollars  to  secure  information  upon  which  to 
base  its  action,  and  after  having  invited  information  of  the 
New  Panama  Canal  Company's  project,  the  exhibition  of  its 
surveys  and  plans,  as  well  as  its  valuable  records,  statistics 
and  data — the  result  of  the  accumulation  of  years  of  labor 
and  investigation. 

Respecting  the  merits  of  the  Panama  and  Nica- 
ragua routes,  Brig.  Gen.  Henry  L.  Abbot,  retired,  late  Chief 
of  the  Engineer  Corps,  U.  S.  A.,  has  made  the  following 
interesting  comparison,  published  in  the  Forum  in  Novem- 
ber. 1898  : 


Panama. 
Two  good  harbors  now  existing. 


A  good  railroad  now  existing  along  the 
entire  route. 


Actual  construction, now  well  advanced 
(about  two- fifths  entire  length  ac- 
tually completed)  and  remaining 
difficulties  accurately  known. 

No  constructions  projected  which  are 
not  justified  by  recognized  engineer- 
ing practice. 

Except  the  works  at  Bohio,  no  difficult 
excavations  or  constructions  to  be 
made  where  the  annual  rainfall  ex- 
ceeds 93  inches  (only  about  50  per 
cent  more  than  on  our  Gulf  Coast). 

Route  lies  wholly  in  Colombia,  where 
all  interests  will  be  benefited  by  the 
Canal. 

Distance  to  be  lighted  and  supervised 
when  the  Canal  is  completed,  46 
miles. 

No  active  volcanoes  within  about  200 
miles  of  the  route  of  tbe  Canal,  and 
earthquakes  therefore  less  probable. 


Cost  carefully  estimated  on  detailed 
plans  at  about  one  hundred  million 
dollars. 


Concessions  from  Colombia  (upon 
which  whole  undertaking  is  based) 
ample,  satisfactory,  and  unques- 
tioned. 


Nicaragua. 

Two  harbors  to  be  created ;  one  of 
them  (Greytown)  presenting  unu- 
sual natural  difficulties. 

A  long  and  difficult  railroad  to  be  con- 
structed, which  Gen.  Hains  consid- 
ers should  extend  along  all  the 
route,  except  the  lake  portion,  i.  e., 
for  a  distance  of  120  miles. 

Practically  nothing  done  in  way  cf  con- 
struction, and  many  of  the  essential 
elements  undecided. 

One  or  two  dams  projected  wholly  with- 
out precedent  in  canal  work  ;  and 
many  embankments  which  must  be 
permanent  elements  of  danger. 

The  most  difficult  works  lie  in  a  region 
where  the  observations  of  the  Canal 
Company  indicate  the  annual  rainfall 
to  be  nearly  22  feet  (256  inches),  or 
nearly  three  times  as  much  as  at  the 
Panama  sites. 

Route  lies  on  the  border  of  Nicaragua 
and  Costa  Rica,  where  local  jealousy 
already  exists,  which  may  preju- 
dice the  interests  of  the  Canal. 

Distance  to  be  lighted  and  supervised 
when  the  Canal  is  completed,  176 
miles,  or  nearly  four  times  as  great 
as  the  Panama. 

Active  volcanoes  near  route ;  one, 
Omotepe,  on  an  island  in  Lake  Nica- 
ragua, and  another,  Onose,  only 
about  40  miles  from  the  locks.  An 
earthquake  on  April  29,  1898,  at 
Leon,  destroyed  several  buildings. 

Cost  estimated  by  the  Government 
Commission  on  data  recognized  as 
wholly  insufficient,  at  about  one 
hundred  and  thirty-three  million 
dollars. 

Concessions  from  Nicaragua  and  Costa 
Rica  (upon  which  whole  under- 
taking is  based)  either  expired,  or 
expire  next  year,  and  officially  de- 
clared by  Nicaragua  to  be  forfeited 
and  void. 


Assuming  that  both  canals  are  constructed  and  open  to 
navigation,  compare  the  two  routes,  by  considering  which  of 
them  would  undoubtedly  be  selected  by  vessels  seeking  to  cross  the 
Isthmus.     This  is  a  crucial  test  which  will  reveal  their  relative 


merits : — 


Panama. 


Ports  both  known  to  be  good  and  easy 
of  access. 

Length  of  route  40  miles,  and  time  of 

transit  14  hours. 
Summit-level  probably  103  feet  and 

perhaps  only  00  feet. 
Locks  double  from  the  opening  of  the 

Canal,  one  chamber  738  by  82  feet, 

and  the  other  738  by  59  feet,  with 

intermediate  gates. 
Curvature    gentle.     Smallest    radius 

8,200  feet.     Of  the  40  miles,  20|  are 

straight,  and  15  have  radii  equal  to 

or  exceeding  9,850  feet. 


No  troublesome  winds  or  river  currents 
to  be  encountered  even  in  times  of 
flood. 


Nicaragua. 
Both  Ports  artificial,  to  which  access 
may  be  doubtful,  especially  on  At- 
lantic side. 

Length  of  route  170  miles,  and  time  of 

transit  not  less  than  44  hours. 
Summit-level  110  feet. 

Locks  single  ( subsequently  to  have  an- 
other chamber  added ) ;  dimensions 
050  by  80  feet. 

Curvature  too  sharp.  Smallest  radius 
in  Canal  proper  4,000  feet.  For  08 
miles  the  route  traverses  the  San 
Juan  River,  where  to  gain  47£  miles 
as  a  bird  flies,  it  is  necessary  to  travel 
G7£  miles — a  loss  of  43  per  cent. 

Heavy  trade-winds  and  strong  river 
currents. 


April  27,  1900. 


Sullivan  &  Cromwell, 
General  Counsel  of 

New  Panama  Canal  Company, 
New  York  City 


*mv  OF  CALIF.  LIBRARY.  tOkMBtoM 


